A surge of optimism has swept through Bhadohi’s carpet industry following the recent India-US trade deal and tariff reductions on Indian products. Exporters in the region anticipate a potential 20% increase in business, likening the development to a festive moment for the sector. The US administration’s decision to lower tariffs to 18% and hint at further reductions has brought significant relief to exporters.
Local exporters attribute this positive turn to Prime Minister Narendra Modi’s diplomatic efforts and ongoing dialogues, acknowledging the role of Union Ministers Piyush Goyal and Giriraj Singh in this achievement. Bhadohi, a globally recognized carpet hub supporting numerous weavers and exporters, faced a setback when the US imposed high import duties, nearly halting exports. Previously, a substantial portion of India’s carpet exports, around 60-65%, were directed to the US market, but demand plummeted after the tariff hike.
In early 2026, following India’s diplomatic engagements, US President Donald Trump reduced the overall tariff to 18%, signaling a potential further decrease. This move has instilled confidence in the industry, with exporters noting a gradual resurgence in demand from American buyers. Aslam Mehboob, Vice Chairman of the Carpet Export Promotion Council (CEPC), emphasized the positive impact of the tariff cut on the business environment, highlighting the revival of stalled orders and a hopeful outlook for the future.
Mehboob pointed out that the recent tariff adjustments have already started benefiting the industry, complementing the progress in India’s trade negotiations with the European Union. With business worth approximately Rs 17,640 crore tied to the US market alone, the tariff relief is expected to not only boost orders but also ensure more stable employment for weavers in the region. The direct carpet exports from Bhadohi amount to around Rs 4,500 crore, a figure that rises to nearly Rs 9,000 crore when considering production from other states like Delhi, Panipat, and Haryana.
